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Risk Factors In Business

We know the positive points of the business but we should aware of fluctuations in business/up and down in business. 

For every business, there are different phages through which business goes.

  • Introduction Phase: At introductory phase, there is very slow demand increases and more efforts are required. 
  • Growth Phase: There is an increase in demand for the products and services, need to focus on resources, process, quality, capability etc. 
  • Maturity Phase: There is a peak state of a business and need to focus on more strategies to be in a competitors market, increase customer reach to grow or for stability in a market. 
  • Decline Phase: This phase is a decrease in demand for our products and services, its really alarm to a business to focus on advertising, reach, quality enhancement, efficiency, customer satisfaction, customer feedback etc. 




When the business is running, risk can be considered in every phase to avoid future problems. 

Risks in an INTRODUCTION phase: 

  •   Improper planning: Plan each and every task by studying, forecasting, knowing the capabilities and considering the timelines. Perfect plan is like half done tasks. Plan your tasks using various tools and techniques. Lack of planning may lead collapsing of pillars of business objectives. Give always priorities to planning the tasks. 
  •   Financial planning: Sufficient funds as per requirements is the key success factor of business. Stage-wise financial planning is necessary to initiate the business. Avoid unnecessary cutdowns in investments for the business. Plan with finance experts, take advice from legal team and experts. Find out the various resources and optimized selection of options are necessary. 
  •   Resources selection: Proper resources selection is required when we talk about employees, materials and machines. Each carries values as it plays compulsory role in our business. 

Risk in GROWTH phase: 

  •  Supply as per demand: Continues supply of our products and services leads continue growth of our business. If there is a break or delay in supply, customer may think for different options. As our motto must be "to be customers first choice", give continue services to customer. 
  •   Quality of service/product: Customer attracts due to quality offer in terms of service or products. Quality satisfies customers and in return we may get ore business. Quality at every stage should be checked by our internal quality team to avoid future rejections. 

Risks in MATURITY phase: 

  •  Be in a competition: Always study competitors products and services and try to give more better than the competitors products. 
  •   Adopt new tools and technologies: Focus on supplying better products and services in advanced manner using new tools and technologies. 
  •   Attend business exhibitions: Showcase your business in various exhibitions and increase customer or market reach. 

Risks in DECLINE Phase: 

  •   Branding and advertising: Do not go away from the branding and advertising as its a key success factor of the business. 
  •   Customers Feedback: Actively involve in surveys and implement good suggestions from the customers. 
  •   Offers and schemes: Try to give more offers and schemes to customers on your services and products, sales will increase with some percentage.

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